Owners Association Regulations
The new regulations require Developers to form Owners Associations by 13 October 2010 or within 6 months of the first unit being transferred. To satisfy these requirements we support Developers to achieve the following key objectives

1. Formation of an Interim Owners Association
1. Completion of the Documentation requirements to legalize the Owners
2. Association
2. Preparation of Accounting data for the Audit required by the regulations
3. Strategy for Protection of Developers Brand once the OA is formed
4. Strategy for Developer relations post OA

Disclosure Statements
From 12 July 2010, for projects which have no units with title deeds registered to the unit owners in Dubai Land Department, the developer must attach interim disclosure statements to the sale and purchase agreement, or else the purchaser can cancel the agreement and demand a return of their investment .

Kingfield help developers with standard templates for each property to continue to sell units consistent with the regulations

Owners Associations
By 13 October 2010, for completed projects or within 6 months of handover of the first unit, developers must transfer the ownership of the project to a duly formed owners association. RERA have indicated they will not approve any new service fees unless an Interim Owners Association is formed.

The process of forming an Owners Association requires an Interim Owners Association to be formed, an audit of the service fees and collections, and a variety of documentation to be submitted to RERA and the Economic Department, before a Trade license can be issued for the Owners Association. Once the Owners Association is formed the developer must transfer any financial balances to it within 21 days. An Audit must be performed to verify the correct balances are transferred. At this stage the Owners Association has full responsibility for the management of their development. The OA must appoint a Manager to manage their affairs, including OA meetings, elections of the board, Facilities Management, Budgeting, collections of service fees, Insurance and satisfaction of all legal regulations of the Owners Association.

Implications for Developers
Developers have invested significantly into brand image and need to consider carefully, the process of transferring the ownership of their projects to individual Owners Associations. Developers are likely to need to consider a strategy for maintaining a relationship with their clients and ensuring that the new owners protect the integrity of their brand.

Developers will want appropriate standards to be maintained so that their carefully developed brand is maintained into the future.

Implications for Owners
Owners need to acquire the skills of an experienced management team that can ensure that adequate preparations are taken to deliver the quality of service required and achieve the best value for owners over the long term, while maximizing the long term rental return and resale values.